GAIL Shares Rise 3% on Share Buyback Consideration By Board: Details

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GAIL Shares Rise 3% on Share Buyback Consideration By Board: Details
Credit: © Reuters.

By Malvika Gurung

Investing.com -- Shares of the state-owned natural gas corporation GAIL (NS: GAIL ) rose nearly 4% in early trade on Monday and were trading 2.95% at Rs 152 apiece at 11:15 am, after the company’s board announced to consider a share buyback on March 31.

GAIL’s board of directors will meet on March 31 to consider the buyback of the company’s paid-up equity shares, for the second time in many years.

On the same day, the company’s board will also consider and approve the financial results for the quarter ending March 2022 and the entire fiscal stated a PTI report.

Moreover, the government owns a 51.8% stake in the gas provider and many believe that it could participate in the buyback.

To put some light, share buyback or share repurchase is a process when a company purchases its shares from stakeholders and is considered as an efficient way (tax-wise), or an alternative for returning money to the shareholders.

In FY 2020-21, the state-owned company had conducted a share buyback and the government received Rs 747 crore in the event, noted the report.

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